The group is currently struggling with its £1.5bn debt pile and has proposed a restructuring plan that would have seen most of its lenders’ debt converted to equity. And earlier this week Credit Suisse rejected the plans, which needed 100 per cent of lenders’ votes.
However, Credit Suisse yesterday changed its mind and agreed to the terms, according to a source close to the talks.
The bank had sought a stake in the restructured business and had made a counter proposal.
But securing agreement on a debt-for-equity swap in the firm became difficult due to the complex nature of the company’s capital structure, which includes 11 tranches of debt.
Hatfield Philips, the “bond administrator” has held last ditch meetings with investors to convince them to agree to a new plan.
Without Credit Suisse’s backing the group faced a fire-sale at just a third of its value. Creditors were concerned that the sale would raise less than the debts the firm owed.
The company is currently said to be worth only around £700m.
Four Seasons, which cares for 15,000 people in 400 homes, first ran into difficulty last summer when it became apparent it could not meet a debt repayment deadline.
The company’s creditors agreed to four “standstill” agreements in the past 12 months, delaying repayment of debt until a suitable restructuring of the company could be reached.
The group still has to win over its junior lenders, which include Trafalgar and EOS, but it’s thought they will now follow Credit Suisse’s lead.
The company’s property portfolio was valued at £900m by estate agent Knight Frank late last year but property values have fallen further since then.
Hatfield Philips has issued a deadline of Monday for response to its restructuring plan.